| Show BABSON p I CUT 11 IN mm OUTPUT Lower Costs and Less Legs Profit On Cars Anticipated t 4 HILLS Mass Mus Jon Jan Roger 18 It 13 RaKer Rorer W Babson the tho statistician has bas just completed a stud study of the th automobile industrY that indicated l the tho th tl tr-nd tr tor for 1924 1 Hh ll 1 IY statement Issued to- to today to today day suggests s1 3 80 OO now new cars as production with prices tending lower loer and profits not Quito lS as good as ns 1423 1 29 a aOU OU OUTPUT When automobile production ii 11 charted against business s S says Mr Babson v is n i find that the tho number of new cars made mado mad ates accor acor inc to general l business conditions In 1909 kith kill general business 1 bo boie boe e normal I production Increased per pcr cent OVer 1908 In 1915 S production w is as only CO 60 per p r cent of o 1917 2919 1919 show l an increase se of ot 70 per cent over the previous pre year with 1920 at about the tho th same level The fol- fol followIng following fol lowIng ear ear with t business again Ag afa below normal nornal production dropped to 79 per r cent of ot the th 1 1120 1620 tl r Th The year 3 ear 1622 1 22 shoved sho an on of ot 54 per cent ent or oer 1321 1921 and ind 1923 ures figures 66 6 per larger than 1022 Such radical s a res are e- e ex extremely difficult to and no so 0 face tace 1924 with the th of normal the the Babson chart Babson-chart chart Shows show sho J activity at I 1 Iper Iper per vent cent n booi normal It I li is there there- for tor for for- probable production will 11 recede from the 1023 hIgh snack mark I Qt if slightly over 4 to about S 3 00 new cars cur TO In 1424 I I IO MOSTLY Y TI-Y T CEan I i Another Intel UnA de ile elop- elop ment elop-ment moot ment I Is evident In the III th proportion ro of replacements The j point in the motor In- In in In-du In tr has ha hit been ben at aC length I Ib by b those tho e holding arlous ulous opinions regarding It IL it hut but th- th th statistics sl noI now no I that 13 per cent of the cars registered lit at present prent will he be In 1924 This lila will re- re re beI I quips about 1 30 10 new cars care An increase In registration of about lU 11 per cent or 1 3 10 may bo be expected Production for tor 1924 will willbe be splIt Into aut 87 57 per cent ent for ts and 41 H per cent tori for increased ed registration rd It Is In- In Int Interesting In t resting to note noto tint that pre prel loudly busby ly I cd nosY new car sales Eales have always Ia l-cd l ed replacement replacement- ment rAft rAK Since Sine economy demands mands large luge scale production It I IB Is that tbt lender leaders In the motor Industry will tend to 10 lower loner er a In order to get r Lower commodIty prices would fa faor or uh It a lIcy and In- In increased In creased ti car only be b found hi b tapping tappin 13 Ty lower price le lecIs els cIs Tho The popular ir trend Is la also alo toAd Md economy of o operation and lighter construction I In Jn the th m inner icing Id fl-Id we also find that the th 10 leading or- or organization or or-I or 90 00 pc pel pei cent ot of the cn cars can l hL ncy nc to iii cen cen i production at th the e pen ot of the th smaller makers will III proba proba- ble bly probably probable continue Profits In 1923 1013 were hIgher hr thin In any tiny pre pre lous year eRr continued Ina M M- M na bon and Ih th- th In estor I Is Interested In the probable tr trend nd of motor stocks d stocks decline In oum and increase e In eIn competition ou ou d Indicate R a smaller margin of ot profit for tor 19 1924 1 H Comparative condition Ut do not appreciably bly higher ieli 1 el for tor dependent on these earning earnings the fundamental business situation e is e find no that prom prom- Ise Ie promIse prom a broad bull boil rise from ron pr present nt levels that thit might earn carn the moor mOr stok tocks Mith It Those Thesa t two tao 0 groups roup ot of factors factora seem leem to 10 agree that nio- nio mo tor motor stocks as a n are not an t Durehe at t rUling prices LESS LES'S J S I There re is Ie 1 a tremendous and tinS ee- ee te demand for tor motor I trans con concluded Mr Babson that will III be b met alon along practical and economical rather rathor i than luxury Un |
